Interest Rate Cut Odds Increase, But Market Consolidates: Why?

2 Min Read
2 Min Read

The Federal Open Market Committee (FOMC) assembly will likely be held later this week on December 10, 2025. The assembly will resolve whether or not the Federal Reserve will lower charges additional in December. In accordance with CME FedWatch, there may be an 87.2% likelihood that the Fed will lower charges by one other 25 foundation factors. Regardless of the excessive chance of additional rate of interest cuts, the cryptocurrency market exhibits no indicators of rising. As an alternative, costs seem like stabilizing. Let’s take into consideration why the cryptocurrency market doesn’t present constructive actions.

Why is the crypto market stagnant regardless of the excessive chance of rate of interest cuts?

The dearth of motion within the cryptocurrency market could also be as a result of macroeconomic uncertainty. Investor sentiment has not absolutely recovered after the October-November market crash. Investor sentiment stays within the realm of “excessive concern”, Different stated.

Inflows into crypto ETFs have additionally slowed considerably in latest months. Low ETF inflows might point out a bearish outlook for monetary establishments. Traders could also be viewing low ETF inflows as an indication that the worst is just not but over.

After lackluster efficiency over the previous few weeks, the crypto market might achieve momentum within the coming days. If the Fed cuts charges by one other 25 foundation factors, inflows into Bitcoin (BTC) might spike considerably. Different property are more likely to comply with swimsuit.

Moreover, Grayscale believes Bitcoin (BTC) will attain an all-time excessive someday subsequent yr, based mostly on the idea that the unique cryptocurrency follows a five-year cycle as a substitute of a four-year cycle. BTC might attain new highs subsequent yr, triggering a market-wide bull run.

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Nonetheless, additionally it is attainable that the crypto market won’t react to a possible fee lower. In October, rates of interest have been lower by 25 foundation factors, however the cryptocurrency market didn’t transfer.

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